Ms. Shobana Thaya reports

CARPATHIAN'S RDM GOLD PROJECT UPDATE

Carpathian Gold Inc. has provided an update on its wholly owned subsidiary, Mineracao Riacho dos Machados Ltda. (MRDM), which owns and operates the RDM gold project, Brazil. As announced on Dec. 13, 2013, MRDM had received from SUPRAM, the state environmental agency, the Autorizacao Provisoria de Operacao (APO), a provisional permit, allowing it to proceed with the full operation of its gold-producing facilities. Despite several days this week of severe precipitation, which is unusual for this time of year, the process plant has been operating on an intermittent to variable reduced rate. The corporation however still anticipates achieving its first gold pour prior to year-end.

As previously disclosed in the corporation's third quarter management's discussion and analysis, MRDM had entered into a forbearance agreement with Macquarie Bank Ltd. under the terms of which Macquarie had agreed to provide up to $17-million, at its discretion, of additional financing under a tranche 3 of the project finance. This tranche 3 was due to be repaid on Nov. 29, 2013, and bears interest at 15 per cent per annum. The forbearance has now been extended to Jan. 3, 2014, and the funds drawn down thereunder now stand at $27.5-million. The corporation is working with Macquarie in relation to possible continuing options. Additional financing still remains entirely at the discretion of Macquarie and there are therefore no assurances that MRDM will have sufficient funds to continue operations during production ramp-up.

As previously announced, the corporation is conducting a review of strategic alternative options. The corporation will continue to work with Macquarie while these strategic alternatives are still being pursued. The corporation does not intend to disclose further details with respect to the process unless and until the board of directors has approved a specific transaction or such disclosure is otherwise appropriate.

Dino Titaro is the qualified person (as defined in National Instrument 43-101) and is responsible for preparing the technical information contained in this news release.

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